Campaigning for Long-term Investors, not Mass Crowdfunding with Nathan Rose
Release Date: 10/28/2016
The Intrepid Entrepreneur
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What’s the difference between crowdfunding and equity crowdfunding? And how do you know which one, if either, is right for your company?
I’m sitting down with Nathan Rose of Assemble Advisory, an equity crowdfunding agency, to get his inside scoop on what makes it worth using equity to access capital. Nathan’s talking about researching platforms, getting to know your customers, and deciding how to spend your time. You can’t do everything!
We’re also getting into the difference between equity investors and mass crowdfunding, and what you can expect from both groups. Nathan’s offering a few sneak-peeks into what he has to say about these different techniques in his new book, Equity Crowdfunding.
Equity crowdfunding is changing, it’s not just for brand new startups anymore. Whether you’re just getting started or looking to expand, Nathan’s full of expert advice on how to approach this new opportunity.
Bravery in Business Quote
“Equity crowdfunding allows you to raise much more money than a Kickstarter campaign” - Nathan Rose
(click to tweet)
Cliff Notes:
- Equity crowdfunding campaigns should be run differently than crowdfunding campaigns. The marketing plans are very different because you’re looking for different kinds of investors.
- Shareholders in equity crowdfunding will be around for the long term. They should expect to not make money for a while, until the company sells or becomes large enough that other people are willing to buy
- Investors in equity crowdfunding are often more experienced. They know what to expect and the risks involved.
- Equity crowdfunding used to just be for startups, but now it’s starting to be used by existing companies looking to expand and branch out.
- Stay in touch with your investors, even when you don’t have big news. Shareholders should be given regular updates on how your company is doing, not just when you’re raising money.
- Crowd funding is public in a way that asking for money from the bank isn’t. Even if your campaign isn’t successful, it gains positive media attention and helps your business to get organized and self-evaluate.
- Larger companies used to pay lots of money for information on their clients and potential customers. Crowdfunding allows you direct access and feedback from your clients.
- Spend your time in proportion to the money. One investor with a lot of assets is worth going out to meet and talk with, sometimes more than a lot of small social media interactions.
- Before you start any crowdfunding, make sure that you’ve validated your product and have guaranteed that there is market interest in your company.
- Do your research before choosing a platform. Make sure you know the audience and policies of each platform.
“It’s important to communicate with investors even when you don’t have big news to say” - Nathan Rose
(click to tweet)
Resources:
Book:
Amazon.com/Equity-Crowdfunding-Complete-Startups-Companies